Glossary | Loan Pie

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F

Fair Market Value

Fair market value is a selling price the buyer and seller agree on.

FDIC Insured

FDIC Insured refers to a bank account that is insured by the government. The account's contents are protected up to $250,000.

FICO Score

FICO score is a type of credit score that lenders use to determine an applicant's credit risk and whether to extend a loan. FICO is an acronym for the Fair Isaac Corporation, the creators of the score.

First Lien (Mortgage or Deed of Trust)

First lien is the legal right of a creditor to sell the collateral property of a debtor who fails to meet the terms of a loan contract.

Fix and Flip

Fix and flip is a real estate investment strategy in which an investor buys properties with the goal of selling them for a profit after making improvements.

Foreclosure

Foreclosure is the process of a lender taking possession of a mortgaged property due to the borrower's failure to make payments.